By Stephen Nakrosis

Pembina Pipeline said business fundamentals remain strong, given the relative strength of the Western Canadian Sedimentary Basin plays and other recent and emerging developments.

"Canadian producers are proving resilient despite volatility in commodity prices and the broader economy and Pembina has observed that its customers' development plans remain on track," the company said. "Further, ongoing consolidation of upstream producers continues to support greater efficiency, more competitive platforms, and stronger counterparties, which Pembina believes leads to more sustainable production growth."

On Montney formation:

The Montney formation is expected to be one of the primary drivers of WCSB growth, Pembina said, adding it has some of the lowest supply costs in North America. The company added top tier oil sands producers are demonstrating breakeven costs in line with top-performing U.S. shale plays. The producers are expected to continue pursuing debottleneck expansions that would increase oil production and may drive increased demand for condensate.

"Further, these plays have some of the longest Tier 1 inventory lives in North America, at greater than 20 years assuming WTI oil prices of $50," the company said.

On new infrastructure:

Pembina said a number of projects, including the recent start-up of LNG Canada and the future Cedar LNG Project are expected to contribute to natural- gas production growth of about five billion cubic feet per day and NGL production growth of about 250,000 bpd by 2030.

"Growing Alberta regional gas demand, including to power potential data centers, as well as new petrochemical facilities and new or expanded NGL export facilities are all expected to further contribute to natural-gas and NGL production growth," the company said.

Pembina also said it estimates that up to 600,000 bpd of new oil egress could come from brownfield expansions of existing oil pipelines by 2030.

On policy environment:

The company said it observed a shift in tone from policy makers which could positively impact how the Canadian energy industry evolves.

"At the federal level, in particular with support from Bill C-5 One Canadian Economy Act, there is momentum building towards reshaping Canada's energy strategy in a way that could unlock Canada's abundant and diverse energy resources," Pembina said.

At the provincial level, the company said, Alberta's government "continues to be supportive of conventional energy development, encourage federal regulatory reform, and create a constructive investment environment for energy-related industries, including petrochemicals and data centers."

On new market access:

Pembina said as a result of a new commercial agreement and a newly sanctioned project, it will have access to "50,000 bpd of highly competitive export capacity to premium price markets, including in Asia, for its own and customers' propane."

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

August 07, 2025 19:09 ET (23:09 GMT)

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